Introducing the concept of Charitable Microfinance, as a renewed perspective to the dimension and dynamics of microfinance.Conventional source of finance isn't enough to tackle the challenge of poverty and abject penury. However, the proposed model of work will certainly bring in a holistic change provided it's allowed to flourish in it's vision and impacting mission.

1. Charitable Microfinance
Debidutta Pattnaik, CFA (ICFAI)
MBA, MIFA
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2. 2
Nobel Price Laureate Prof. Mohammad Yunus
The man who exploded the horizon and perspectives of financing
I would say that I did
something that challenged
the banking world.
Conventional bank look
for the rich; we look for
the absolute poor.
All Humans
are born
Entrepreneurs
People should
wake up in the
morning and say,
I am not a job
seeker, I am a job
creator.
Professor Mohammad Yunus
(Founder of Grameen Bank)

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Microfinance
“Microfinance recognizes that poor people are remarkable reservoirs of energy and
knowledge. And while the lack of financial services is not just a sign of poverty, today it is
looked as an untapped opportunity to create markets, bring people in from the margins and
give them the tools to help themselves.” - Kofi Annan (Secretary General of the UN)
“The poor stay poor, not because they are lazy but because they have no access to capital.
- Laureate Milton Friedman
“Overcoming Poverty is not an act of charity, it is an act of Justice. Like slavery and apartheid,
poverty is not natural. It is manmade and it can be overcome and eradicated by the actions of
human beings. “
- Nelson Mandela
“Social Entrepreneurs are not just content just to give a fish or teach how to fish. They will not
stop until they have revolutionized the fishing Industry. “
- Bill Drayton (The Social Entrepreneur)

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Introducing Charitable Microfinance
Microfinance primarily emerged to fulfil a social vision. However, I strongly feel, slowly it is
drifting far away from its core in the world of commercialization, sinking deep into the game of
risk mitigation and profit maximization.
Charitable Microfinance as a term is the combination of charity and microfinance, where
Charity forms the core of Microfinance Operation.
It should be designed to go beyond the mechanism and dynamics of the current malpractices
and foster growth of the ones lost in the dire ends of poverty.
Beyond, everything else, the motivation of such ventures should be bringing socio-economic
justice to the absolute poor, suffering in the curse of abject penury.
Thus, there is a strong need for a new breed of sociopreneurs to revise the conceptual
framework of microfinance in order to achieve its ultimate goal of poverty alleviation. In a
way these group of individuals and institutions should know, go and show the way of actual
financial transformation through the execution of a charitable vision.
Multiple lending to same individual beyond the capacity of repayment, client selection based
on the capacity of repayment rather than the intensity of poverty, coercive collection practices
leading to suicides etc. stand as a proof to the above statement.

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Meet Manudi Bai
•Belongs to a village where water in summer
or winter is a distant dream.
•Imagining winter or summer crops is
maniac.
Conventional Commercial
Financing doesn’t have a solution
to her problem, Charitable
Microfinance has.

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Manudi’s story of transformation
•Manudi Bai and four other families of her
community formed a joint ownership
group.
• Availed a least cost microloan from PMF
• The money was used for the construction
of a bore well.
• Because of their endeavour they cultivated
the first wheat ever in the year 2014.
• Their next project is rain water
conservation.

7. 7
Meet Kamala Bai
•A widow
•Mother of 3 children
•No Savings
•Young daughter developed a cyst
•Suspected cancer
•No money, approached a bank
•Application rejected due to lack of collaterals
Conventional Commercial Financing doesn’t have a solution to her
problem, Charitable Microfinance has.

8. 8
•On approaching PMF, she was immediately
released a zero cost microloan to meet
the health needs of her daughter.
• Did the biopsy.
• Fortunately the cyst wasn’t a cancer.

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Meet Pratap Damor
• Once a skilled marble artist
•Father of 3 brilliant children
• Lost all savings, livestock in the
treatment of his beloved spouse.
•Presently Jobless
•His circumstances doesn’t allow
him to migrate for employment.
• No formal source of finance to
help him get re-established.
•Informal source of finance is extremely dearer.
•Had a deep desire to make his fallow land productive during winter.
• Couldn’t afford to dig a bore.
Conventional Commercial Financing may not accomplish his dream,
Charitable Microfinance can.

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• With the help of a series of PMF’s
Charitable Microfinance and motivation
Pratap is on his way of
Transformation.

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Meet Heeralal
• Like any other person of his village, he was very
passionate about having access to water.
• One night he saw a vision
• Immediately embarked on an excavation
• Cost him acres of land, yet water didn’t wet his hand.
• Went on borrowing ₹ 50,000 @ 120% pa
(the normal rate charged by a moneylender)
• Entire income was spent just on serving the loan.
Conventional Commercial Financing
could not fulfil his vision, but the
Charitable Microfinance could.

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Heeralal and his
community are now in the
Journey of transformation.

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Meet Munna
• A floor polisher who won bread on labour
• Once his child was hospitalized
• Approached the contractor for money
• Returned empty handed
• Had to borrow some high cost loan
• Thought of quitting the job and start a
polishing business of his own.
• No formal source of finance was available
to unleash his entrepreneurial vision.
Conventional Commercial Financing could not fulfil his vision, but
the Charitable Microfinance could.

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• With the help of PMF’s Microloan
Munna is a micro-entrepreneur now.
•However this is not the end, the story
of transformation has just began.

15.  Nearly half of world’s population live on less than $2.5 a
day.
 80% of the world population lives on less than $10 day.
 870 Million People worldwide do not have enough food to
eat.
 Nearly 1 Billion people lack access to water.
 Nearly 22,000 children die every day due to poverty.
 Preventable diseases like diarrhea and pneumonia take the
lives of 2 million children every year
Do You Know?

16.  Nearly ¼ of the global poor live in India.
 100 Million Indians live in slums.
 75 Million lack decent sanitation.
 70% of India live in villages.
Do You Know?

17. 50% of Children are still below acceptable nutrition
level and Basic medicines for 75% of Indian Villages
are not made available.

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Solving these issues is not the job of a
single Govt. or any person or Institution,
it’s the responsibility of all...

19.  We select our beneficiaries based on perceptible poverty indicators/assessment
tools.
 Do the SWOT analysis.
 Work on developing their skill, knowledge, attitude and set SMART goals.
 Help them get established in groups.
 PMF’s range of services facilitate the required financial and non-financial
resources to convert strengths into core competence & weaknesses into
strengths.
 We focus on creating success stories out of our direct beneficiaries.
 Our model graduates become a source of inspiration and attraction for others.
 In a way, PMF’s efforts have both direct and indirect impact on the immediate
and distant communities helping us achieve organic growth Y-o-Y.
How we help solve some of the issues?

20. What we do?

21. How is actually
works?
PMF
Branch
Community Groups e.g.
JLGs, CLGs
Institutional
Support
More Community
Groups
Training and
Skill
Development
Charitable
Microfinance
Jacob’s Flock
Individual
Support
Gyandeep UttamswasthSuccess Stories Success Stories

22.  You have already done so….
 You can adopt a locality/community/village
 Join our Organization as Volunteer
 Consider making a bequest to Pragati Marg Foundation.
How you can help?

23.  A Purpose
 Satisfaction
 A sense of Achievement
 Self-worth
 And that you have made a difference in someone’s life.
What’s in it for you?

24. Together we can,
together we will make
the difference!!!
Remember

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